ConocoPhillips (COP) Gets the Go-Ahead for North Sea Gas Field
ConocoPhillips (COP), the U.S. oil giant, received an approval from the Norwegian authorities for the commencement of operations at the Tommeliten A gas and condensate field in the North Sea. This development marks a turning point in the energy landscape, with an estimated 24 million standard cubic meters (150 million barrels) of oil equivalent poised to be recovered from Tommeliten A, per media reports.
COP has earmarked approximately NOK 13 billion (approximately $1.18 billion USD) for the development phase, signifying the scale of this project. The Norwegian Petroleum Directorate has outlined a comprehensive development plan for Tommeliten A, including the drilling of 11 wells. Of these, seven will be completed by the time operations commence, while the remaining four are slated for completion in the first quarter of 2024. This strategic approach aims to maximize the field's potential while ensuring sustainable long-term production.
Tommeliten A boasts a subsea development with two templates, providing ample space for up to 12 wells. The field is situated in Production Licence 044, in a transboundary zone, with a marginal share extending onto the U.K. continental shelf. Both the Norwegian and U.K. license holders have collaborated to coordinate operations. Tommeliten A, positioned southwest of the Ekofisk field in the southern reaches of the Norwegian sector, is primarily a gas and condensate reservoir.
According to Tomas Morch, assistant director of license management in the Norwegian Petroleum Directorate, the Tommeliten A development is a prime example of maximizing existing infrastructure in the region. The successful realization of this project (ahead of schedule and within budget) demonstrates the potential for similar advancements in the area.
Zacks Rank & Key Picks
Currently, ConocoPhillips carries a Zack Rank #3 (Hold).
Some better-ranked players in the energy sector are Matador Resources Company MTDR and Pioneer Natural Resources Company PXD, each currently sporting a Zacks Rank #1 (Strong Buy), and Core Laboratories Inc CLB, carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Matador Resources is among the leading oil and gas explorers in the shale and unconventional resources in the United States. The company’s prime intention is to create more value for shareholders and generate lucrative returns from the capital invested in unconventional plays. MTDR has witnessed an upward earnings estimate revision for 2024 over the past 30 days.
Pioneer Natural Resources is a leading upstream energy firm with primary operations in the Permian basin, which is among the lucrative oil shale plays in the United States with fewer risks. Pioneer's total holding of more than 1 million net acres in the Permian basin will support long-term oil production growth. PXD has witnessed an upward earnings estimate revision for 2023 and 2024 in the past seven days.
Core Laboratories’ strong presence in the emerging shale plays and its global footprint will provide for steady growth rates going forward. CLB’s technology-heavy portfolio of proprietary products and services gives it the opportunity to optimize production from the new and existing fields. It has witnessed an upward earnings estimate revision for 2024 in the past 60 days.
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